HOUSTON--(BUSINESS WIRE)--Forum Energy Technologies, Inc. (NYSE: FET) today announced fourth
quarter 2016 revenue of $147 million, an increase of $9 million, or 6%,
from the third quarter 2016. Net loss for the quarter was $13 million,
or $0.14 per diluted share, compared to a net loss of $18 million, or
$0.20 per diluted share, for the third quarter 2016. Excluding $3
million or $0.02 per share of special items, the adjusted net loss was
$0.16 per diluted share in the fourth quarter of 2016. See Tables 1-5
for a reconciliation of GAAP to non-GAAP financial information.

New inbound orders in the quarter were $183 million, a 26% increase from
the third quarter 2016, resulting in a book to bill ratio of 124%.

Forum’s total revenue for the full year 2016 was $588 million, a
decrease of $486 million, or 45%, from 2015. Net loss was $82 million,
or $0.90 per diluted share. Excluding $0.14 per share of special items,
adjusted net loss was $0.76 per diluted share for the full year 2016.
Forum generated cash flow from operating activities of $64 million and
free cash flow of $58 million for the full year 2016.

Segment Results

Drilling & Subsea operations focus primarily on manufactured equipment
and consumable products for global drilling and subsea contractors. The
segment revenue was $55 million, an 8% increase from the third quarter
2016, due to a 27% improvement in sales of drilling consumable products
and capital equipment led by the increase in the U.S. land rig count,
partially offset by lower demand for subsea equipment. New inbound
orders in the fourth quarter were $65 million, a 39% increase from the
third quarter 2016, resulting in a book to bill ratio of 118%.

Completions segment revenue was $35 million, a 5% increase sequentially,
as customer spending improved on downhole completion products and
pressure pumping consumable equipment. New inbound orders in the fourth
quarter were $38 million, an 18% increase from the third quarter 2016,
resulting in a book to bill ratio of 109%. The Completions segment
designs and manufactures products for the well construction, completion,
stimulation and intervention markets primarily in North America.

The Production & Infrastructure segment manufactures well site
production equipment, desalination refinery equipment, and a wide range
of valves for upstream, midstream and downstream oil and gas customers.
Production & Infrastructure segment revenue was $57 million, a 6%
increase from the third quarter 2016, primarily due to improved sales of
our production equipment and midstream valves in the U.S. New inbound
orders in the fourth quarter were $79 million, a 21% increase from the
third quarter 2016, primarily due to increased orders for well site
production equipment, resulting in a book to bill ratio of 138%.

Review and Outlook

Cris Gaut, Forum’s Chairman and Chief Executive Officer, remarked, "We
are beginning to see the impact of increased U.S. land activity on our
business, and this was the driver of the improved revenue and orders we
saw in the fourth quarter. Forum’s fourth quarter 2016 revenue saw
growth in each product line except for Subsea and was the first
sequential increase in revenue since the severe downturn began in the
third quarter 2014. The 26% sequential increase in orders from the third
quarter 2016 was driven by increased U.S. land demand, including for
some longer lead time items that will be delivered over the course of
2017. We are ramping up our manufacturing volumes and incurring the
upfront costs necessary to respond to the recovery.

"Our financial condition remains strong. Once again, our free cash flow
significantly exceeded our net income in 2016, including strong free
cash flow performance in the fourth quarter. With the proceeds from our
equity offering, we ended the year with $234 million of cash on hand and
nothing drawn on our bank credit facility. We are well positioned to
actively pursue targeted acquisitions, such as the one we closed last
month."

Recent Events

During the first quarter of 2017, Forum acquired the assets of Cooper
Valves and a 100% ownership interest in Innovative Valve Components.
Cooper Valves manufactures Accuseal® metal seated ball valves engineered
to meet Class VI shut off standards for use in severe service
applications, as well as a full line of cast and forged gate, globe, and
check valves. Innovative Valve Components, in partnership with Cooper
Valves, commercialized critical service valves and components for the
power generation industry.

Forum received net proceeds of $85 million from the sale of 4,025,000
shares of Common Stock on December 8, 2016.

Forum received several awards, totaling $16 million, from one large
independent operator for well site production equipment to support
completion activity in five separate shale basins.

Conference Call Information

Forum's conference call is scheduled for Friday, February 10, 2017 at
9:00 AM CST. During the call, the Company intends to discuss fourth
quarter 2016 results. To participate in the earnings conference call,
please call 855-757-8876 within North America, or 631-485-4851 outside
of North America. The access code is 50034686. The call will also be
broadcast through the Investor Relations link on Forum’s website at www.f-e-t.com.
Participants are encouraged to log in to the webcast or dial in to the
conference call approximately ten minutes prior to the start time. A
replay of the call will be available for two weeks after the call and
may be accessed by dialing 855-859-2056 within North America, or
404-537-3406 outside of North America. The access code is 50034686.

Forum Energy Technologies is a global oilfield products company,
serving the drilling, subsea, completions, production and infrastructure
sectors of the oil and natural gas industry. The Company’s products
include highly engineered capital equipment as well as products that are
consumed in the drilling, well construction, production and
transportation of oil and natural gas. Forum is headquartered
in Houston, TX with manufacturing and distribution facilities
strategically located around the globe. For more information, please
visit www.f-e-t.com.

Forward Looking Statements and Other Legal Disclosure

This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. All statements, other than
statements of historical facts, included in this press release that
address activities, events or developments that the company expects,
believes or anticipates will or may occur in the future are
forward-looking statements. Without limiting the generality of the
foregoing, forward-looking statements contained in this press release
specifically include the expectations of plans, strategies, objectives
and anticipated financial and operating results of the company,
including any statement about the company's future financial position,
liquidity and capital resources, operations, performance, acquisitions,
returns, capital expenditure budgets, new product development
activities, costs and other guidance included in this press release.

These statements are based on certain assumptions made by the company
based on management's experience and perception of historical trends,
current conditions, anticipated future developments and other factors
believed to be appropriate. Such statements are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the
control of the company, which may cause actual results to differ
materially from those implied or expressed by the forward-looking
statements. Among other things, these include the volatility of oil and
natural gas prices, oilfield development activity levels, the
availability of raw materials and specialized equipment, the company's
ability to deliver backlog in a timely fashion, the availability of
skilled and qualified labor, competition in the oil and gas industry,
governmental regulation and taxation of the oil and natural gas
industry, the company's ability to implement new technologies and
services, the availability and terms of capital, and uncertainties
regarding environmental regulations or litigation and other legal or
regulatory developments affecting the company's business, and other
important factors that could cause actual results to differ materially
from those projected as described in the company's filings with the
Securities and Exchange Commission.

Any forward-looking statement speaks only as of the date on which such
statement is made and the company undertakes no obligation to correct or
update any forward-looking statement, whether as a result of new
information, future events or otherwise, except as required by
applicable law.

Forum Energy Technologies, Inc.

Condensed consolidated statements of income (loss)

(Unaudited)

Three months ended

December 31,

September 30,

(in millions, except per share information)

2016

2015

2016

Revenue

$

147.1

$

196.1

$

138.3

Total operating expenses

172.5

262.1

164.9

Earnings from equity investment

0.6

2.5

0.4

Goodwill and intangible asset impairment

—

125.1

—

Operating loss

(24.8

)

(188.6

)

(26.2

)

Other expense (income)

Interest expense

6.7

7.3

6.8

Deferred loan costs written off

0.4

—

—

Gain on foreign exchange and other, net

(6.7

)

(3.9

)

(3.2

)

Loss before income taxes

(25.2

)

(192.0

)

(29.8

)

Benefit for income tax expense

(12.7

)

(28.4

)

(11.8

)

Net loss

(12.5

)

(163.6

)

(18.0

)

Less: Net income (loss) attributable to noncontrolling interest

—

—

—

Net loss attributable to common stockholders (1)

$

(12.5

)

$

(163.6

)

$

(18.0

)

Weighted average shares outstanding

Basic

91.9

90.2

90.9

Diluted

91.9

90.2

90.9

Loss per share

Basic

$

(0.14

)

$

(1.81

)

$

(0.20

)

Diluted

$

(0.14

)

$

(1.81

)

$

(0.20

)

(1) Refer to Table 1 for schedule of adjusting items.

Forum Energy Technologies, Inc.

Condensed consolidated statements of income (loss)

(Unaudited)

Twelve months ended

December 31,

(in millions, except per share information)

2016

2015

Revenue

$

587.6

$

1,073.7

Total operating expenses

718.4

1,077.1

Earnings from equity investment

1.8

14.8

Goodwill and intangible asset impairment

—

125.1

Operating loss

(129.0

)

(113.7

)

Other expense (income)

Interest expense

27.4

29.9

Deferred loan costs written off

3.0

—

Gain on foreign exchange and other, net

(21.3

)

(9.3

)

Loss before income taxes

(138.1

)

(134.3

)

Benefit for income tax expense

(56.1

)

(14.9

)

Net loss

(82.0

)

(119.4

)

Less: Net income (loss) attributable to noncontrolling interest

—

—

Net loss attributable to common stockholders (1)

$

(82.0

)

$

(119.4

)

Weighted average shares outstanding

Basic

91.2

89.9

Diluted

91.2

89.9

Loss per share

Basic

$

(0.90

)

$

(1.33

)

Diluted

$

(0.90

)

$

(1.33

)

(1) Refer to Table 2 for schedule of adjusting items.

Forum Energy Technologies, Inc.

Condensed consolidated balance sheets

(Unaudited)

(in millions of dollars)

December 31, 2016

December 31, 2015

Assets

Current assets

Cash and cash equivalents

$

234.4

$

109.2

Accounts receivable—trade, net

105.3

138.6

Inventories, net

338.6

424.1

Other current assets

72.3

45.9

Total current assets

750.6

717.8

Property and equipment, net of accumulated depreciation

152.2

186.7

Goodwill and other intangibles, net

869.2

915.7

Investment in unconsolidated subsidiary

59.1

57.7

Other long-term assets

6.9

8.1

Total assets

$

1,838.0

$

1,886.0

Liabilities and Equity

Current liabilities

Current portion of long-term debt

$

0.1

$

0.3

Other current liabilities

141.7

151.2

Total current liabilities

141.8

151.5

Long-term debt, net of current portion

396.7

396.0

Other long-term liabilities

63.7

81.1

Total liabilities

602.2

628.6

Total stockholders’ equity

1,235.2

1,257.0

Noncontrolling interest in subsidiary

0.6

0.4

Total equity

1,235.8

1,257.4

Total liabilities and equity

$

1,838.0

$

1,886.0

Forum Energy Technologies, Inc.

Condensed consolidated cash flow information

(Unaudited)

Twelve months ended December 31,

(in millions of dollars)

2016

2015

Cash flows from operating activities

Net loss

$

(82.0

)

$

(119.4

)

Depreciation and amortization

61.8

65.7

Goodwill and intangible asset impairment

—

125.1

Other, primarily changes in working capital

84.5

84.5

Net cash provided by operating activities

$

64.3

$

155.9

Cash flows from investing activities

Capital expenditures for property and equipment, net of proceeds
from sale of property and equipment

$

(6.6

)

$

(30.5

)

Acquisition of businesses, net of cash acquired

(4.1

)

(60.8

)

Net cash used in investing activities

$

(10.7

)

$

(91.3

)

Cash flows from financing activities

Borrowings of long-term debt, including borrowings due to
acquisitions

$

—

$

95.0

Repayment of long-term debt

—

(120.8

)

Proceeds from stock issuance

87.7

5.3

Repurchase of common stock

(0.6

)

(6.4

)

Other

(0.9

)

—

Net cash provided by (used in) financing activities

$

86.2

$

(26.9

)

Effect of exchange rate changes on cash

(14.6

)

(5.0

)

Net increase in cash and cash equivalents

$

125.2

$

32.7

Forum Energy Technologies, Inc.

Supplemental schedule - Segment information

(Unaudited)

As Reported

As Adjusted (6)

Three months ended

Three months ended

(in millions of dollars)

December 31, 2016

December 31, 2015

September 30, 2016

December 31, 2016

December 31, 2015

September 30, 2016

Revenue

Drilling & Subsea

$

55.0

$

83.1

$

50.8

$

55.0

$

83.1

$

50.8

Completions

35.0

44.8

33.6

35.0

44.8

33.6

Production & Infrastructure

57.4

68.6

54.0

57.4

68.6

54.0

Eliminations

(0.3

)

(0.4

)

(0.1

)

(0.3

)

(0.4

)

(0.1

)

Total revenue

$

147.1

$

196.1

$

138.3

$

147.1

$

196.1

$

138.3

Operating income (loss)

Drilling & Subsea

$

(11.9

)

$

(28.7

)

$

(11.3

)

$

(9.5

)

$

(3.8

)

$

(10.4

)

Operating income margin %

(21.6

)%

(34.5

)%

(22.2

)%

(17.3

)%

(4.6

)%

(20.5

)%

Completions (1)

(5.4

)

(25.7

)

(5.2

)

(4.8

)

(3.1

)

(5.0

)

Operating income margin %

(15.4

)%

(57.4

)%

(15.5

)%

(13.7

)%

(6.9

)%

(14.9

)%

Production & Infrastructure

0.2

(1.3

)

(0.7

)

0.3

4.7

(0.1

)

Operating income margin %

0.3

%

(1.9

)%

(1.3

)%

0.5

%

6.9

%

(0.2

)%

Corporate

(7.0

)

(6.7

)

(6.4

)

(6.7

)

(5.7

)

(6.4

)

Total Segment operating loss

(24.1

)

(62.4

)

(23.6

)

(20.7

)

(7.9

)

(21.9

)

Other items not in segment operating income (loss) (2)

(0.7

)

(126.2

)

(2.6

)

(0.1

)

0.1

(0.1

)

Total operating loss

$

(24.8

)

$

(188.6

)

$

(26.2

)

$

(20.8

)

$

(7.8

)

$

(22.0

)

Operating income margin %

(16.9

)%

(96.2

)%

(18.9

)%

(14.1

)%

(4.0

)%

(15.9

)%

EBITDA (3) (4)

Drilling & Subsea

$

2.0

$

(142.0

)

$

(1.1

)

$

(2.5

)

$

4.4

$

(3.1

)

EBITDA Margin %

3.6

%

(170.9

)%

(2.2

)%

(4.5

)%

5.3

%

(6.1

)%

Completions

0.4

(19.0

)

(1.2

)

1.2

3.3

1.2

EBITDA Margin %

1.1

%

(42.4

)%

(3.6

)%

3.4

%

7.4

%

3.6

%

Production & Infrastructure

1.9

(0.7

)

1.0

2.0

6.5

1.5

EBITDA Margin %

3.3

%

(1.0

)%

1.9

%

3.5

%

9.5

%

2.8

%

Corporate

(7.5

)

(6.6

)

(6.2

)

(6.5

)

(5.4

)

(6.2

)

Other items (5)

(0.3

)

—

(0.3

)

—

—

—

Total EBITDA

$

(3.5

)

$

(168.3

)

$

(7.8

)

$

(5.8

)

$

8.8

$

(6.6

)

EBITDA Margin %

(2.4

)%

(85.8

)%

(5.6

)%

(3.9

)%

4.5

%

(4.8

)%

(1) Includes earnings from equity investment.

(2) Includes transaction expenses and gain/(loss) on sale
of assets.

(3) The Company believes that the presentation of EBITDA
is useful to the Company's investors because EBITDA is an
appropriate measure of evaluating the company's operating
performance and liquidity that reflects the resources available for
strategic opportunities including, among others, investing in the
business, strengthening the balance sheet, repurchasing the
Company's securities and making strategic acquisitions. In addition,
EBITDA is a widely used benchmark in the investment community. See
the attached separate schedule for the reconciliation of GAAP to
non-GAAP financial information.

(4) Depreciation and amortization expense has been
reclassified among corporate and the operating segments. Prior
period EBITDA financial information has been revised to conform
with current period presentation with no impact to operating
income.

(5) Includes transaction expenses.

(6) Refer to Table 1 for schedule of adjusting items.

Forum Energy Technologies, Inc.

Supplemental schedule - Segment information

(Unaudited)

As Reported

As Adjusted (6)

Twelve months ended

Twelve months ended

(in millions of dollars)

December 31, 2016

December 31, 2015

December 31, 2016

December 31, 2015

Revenue

Drilling & Subsea

$

227.9

$

487.4

$

227.9

$

487.4

Completions

127.4

267.2

127.4

267.2

Production & Infrastructure

233.7

320.4

233.7

320.4

Eliminations

(1.4

)

(1.3

)

(1.4

)

(1.3

)

Total revenue

$

587.6

$

1,073.7

$

587.6

$

1,073.7

Operating income (loss)

Drilling & Subsea

$

(53.6

)

$

6.8

$

(41.1

)

$

39.1

Operating income margin %

(23.5

)%

1.4

%

(18.0

)%

8.0

%

Completions (1)

(45.1

)

11.2

(23.9

)

36.3

Operating income margin %

(35.4

)%

4.2

%

(18.8

)%

13.6

%

Production & Infrastructure

0.7

22.7

4.6

27.8

Operating income margin %

0.3

%

7.1

%

2.0

%

8.7

%

Corporate

(27.5

)

(28.1

)

(26.7

)

(26.8

)

Total Segment operating income (loss)

(125.5

)

12.6

(87.1

)

76.4

Other items not in segment operating income (loss) (2)

(3.5

)

(126.3

)

0.1

0.3

Total operating income (loss)

$

(129.0

)

$

(113.7

)

$

(87.0

)

$

76.7

Operating income margin %

(22.0

)%

(10.6

)%

(14.8

)%

7.1

%

EBITDA (3) (4)

Drilling & Subsea

$

(0.5

)

$

(75.1

)

$

(10.8

)

$

72.9

EBITDA Margin %

(0.2

)%

(15.4

)%

(4.7

)%

15.0

%

Completions

(23.0

)

36.4

0.7

60.9

EBITDA Margin %

(18.1

)%

13.6

%

0.5

%

22.8

%

Production & Infrastructure

5.5

27.8

11.2

35.2

EBITDA Margin %

2.4

%

8.7

%

4.8

%

11.0

%

Corporate

(30.1

)

(27.4

)

(26.0

)

(26.1

)

Other items (5)

(0.8

)

(0.4

)

—

—

Total EBITDA

$

(48.9

)

$

(38.7

)

$

(24.9

)

$

142.9

EBITDA Margin %

(8.3

)%

(3.6

)%

(4.2

)%

13.3

%

(1) Includes earnings from equity investment.

(2) Includes transaction expenses, loss on sale of
business and gain/(loss) on sale of assets.

(3) The Company believes that the presentation of EBITDA
is useful to the Company's investors because EBITDA is an
appropriate measure of evaluating the company's operating
performance and liquidity that reflects the resources available for
strategic opportunities including, among others, investing in the
business, strengthening the balance sheet, repurchasing the
Company's securities and making strategic acquisitions. In addition,
EBITDA is a widely used benchmark in the investment community. See
the attached separate schedule for the reconciliation of GAAP to
non-GAAP financial information.

(4) Depreciation and amortization expense has been
reclassified among corporate and the operating segments. Prior
period EBITDA financial information has been revised to conform
with current period presentation with no impact to operating
income.

(5) Includes transaction expenses and loss on sale of
business.

(6) Refer to Table 2 for schedule of adjusting items.

Forum Energy Technologies, Inc.

Reconciliation of GAAP to non-GAAP financial information

(Unaudited)

Table 1 - Adjusting items

Three months ended

December 31, 2016

December 31, 2015

September 30, 2016

Operating

Net

Operating

Net

Operating

Net

income

income

income

income

income

income

(in millions, except per share information)

(loss)

EBITDA(1)

(loss)

(loss)

EBITDA(1)

(loss)

(loss)

EBITDA(1)

(loss)

As reported

$

(24.8

)

$

(3.5

)

$

(12.5

)

$

(188.6

)

$

(168.3

)

$

(163.6

)

$

(26.2

)

$

(7.8

)

$

(18.0

)

% of revenue

(16.9

)%

(2.4

)%

(96.2

)%

(85.8

)%

(18.9

)%

(5.6

)%

Restructuring charges

1.6

1.6

1.6

12.6

12.6

12.6

3.9

3.9

3.9

Transaction expenses

0.3

0.3

0.3

—

—

—

0.3

0.3

0.3

Inventory and other working capital reserve

2.1

2.1

2.1

43.1

43.1

43.1

—

—

—

Goodwill and intangible asset impairment

—

—

—

125.1

125.1

125.1

—

—

—

Deferred loan costs written off

—

0.4

0.4

—

—

—

—

—

—

Gain on foreign exchange, net (2)

—

(6.7

)

(6.7

)

—

(3.7

)

(3.7

)

—

(3.0

)

(3.0

)

Income tax benefit of adjustments

—

—

(0.2

)

—

—

(24.4

)

—

—

(0.9

)

As adjusted (1)

$

(20.8

)

$

(5.8

)

$

(15.0

)

$

(7.8

)

$

8.8

$

(10.9

)

$

(22.0

)

$

(6.6

)

$

(17.7

)

% of revenue

(14.1

)%

(3.9

)%

4.0

%

4.5

%

(15.9

)%

(4.8

)%

Diluted EPS -as reported

$

(0.14

)

$

(1.81

)

$

(0.20

)

Diluted EPS - as adjusted

$

(0.16

)

$

(0.12

)

$

(0.19

)

Table 2 - Adjusting items

Twelve months ended

December 31, 2016

December 31, 2015

Operating

Operating

income

Net income

income

Net income

(in millions, except per share information)

(loss)

EBITDA(1)

(loss)

(loss)

EBITDA(1)

(loss)

As reported

$

(129.0

)

$

(48.9

)

$

(82.0

)

$

(113.7

)

$

(38.7

)

$

(119.4

)

% of revenue

(22.0

)%

(8.3

)%

(10.6

)%

(3.6

)%

Restructuring charges

12.5

12.5

12.5

21.8

21.8

21.8

Transaction expenses

0.9

0.9

0.9

0.4

0.4

0.4

Inventory and other working capital reserve

28.6

28.6

28.6

43.1

43.1

43.1

Goodwill and intangible asset impairment

—

—

—

125.1

125.1

125.1

Deferred loan costs written off

—

3.0

3.0

—

—

—

Gain on foreign exchange, net (2)

—

(21.0

)

(21.0

)

—

(8.8

)

(8.8

)

Income tax benefit of adjustments

—

—

(11.4

)

—

—

(25.1

)

As adjusted (1)

$

(87.0

)

$

(24.9

)

$

(69.4

)

$

76.7

$

142.9

$

37.1

% of revenue

(14.8

)%

(4.2

)%

7.1

%

13.3

%

Diluted EPS - as reported

$

(0.90

)

$

(1.33

)

Diluted EPS - as adjusted

$

(0.76

)

$

0.40

(1) The Company believes that the presentation of EBITDA,
adjusted EBITDA, adjusted operating income and adjusted Diluted EPS
is useful to the Company's investors because (i) EBITDA is an
appropriate measure of evaluating the Company's operating
performance and liquidity that reflects the resources available for
strategic opportunities including, among others, investing in the
business, strengthening the balance sheet, repurchasing the
Company's securities and making strategic acquisitions and (ii) each
of adjusted EBITDA, adjusted operating income and adjusted Diluted
EPS is useful to investors to assess and understand operating
performance, especially when comparing those results with previous
and subsequent periods or forecasting performance for future
periods, primarily because management views the excluded items to be
outside of the Company's normal operating results. In addition,
EBITDA is a widely used benchmark in the investment community. See
the attached separate schedule for the reconciliation of GAAP to
non-GAAP financial information.

(2) Loss (gain) on foreign exchange, net primarily
relates to the translation of U.S. dollar denominated receivables
for reporting purposes only and has no economic impact in dollar
terms.

Forum Energy Technologies, Inc.

Reconciliation of GAAP to non-GAAP financial information

(Unaudited)

Table 3 - Adjusting Items

Three months ended

(in millions of dollars)

December 31,

2016

December 31,

2015

September 30,

2016

EBITDA reconciliation (1)

Net loss attributable to common stockholders

$

(12.5

)

$

(163.6

)

$

(18.0

)

Interest expense

6.7

7.3

6.8

Depreciation and amortization

15.0

16.4

15.2

Income tax benefit

(12.7

)

(28.4

)

(11.8

)

EBITDA

$

(3.5

)

$

(168.3

)

$

(7.8

)

Table 4 - Adjusting Items

Twelve months ended

(in millions of dollars)

December 31,

2016

December 31,

2015

EBITDA reconciliation (1)

Net loss attributable to common stockholders

$

(82.0

)

$

(119.4

)

Interest expense

27.4

29.9

Depreciation and amortization

61.8

65.7

Income tax benefit

(56.1

)

(14.9

)

EBITDA

$

(48.9

)

$

(38.7

)

(1) The Company believes that the presentation of
EBITDA is useful to the Company's investors because EBITDA is an
appropriate measure of evaluating the company's operating
performance and liquidity that reflects the resources available
for strategic opportunities including, among others, investing in
the business, strengthening the balance sheet, repurchasing the
Company's securities and making strategic acquisitions. In
addition, EBITDA is a widely used benchmark in the investment
community.

Table 5 - Adjusting items

Three months

ended

Twelve months ended

(in millions of dollars)

December 31,

2016

December 31,

2016

December 31,

2015

Free cash flow, before acquisitions, reconciliation (2)

Net cash provided by operating activities

$

20.1

$

64.3

$

155.9

Capital expenditures for property and equipment

(3.0

)

(16.4

)

(32.3

)

Proceeds from sale of property and equipment

6.1

9.8

1.8

Free cash flow, before acquisitions

$

23.2

$

57.7

$

125.4

(2) The Company believes free cash flow, before
acquisitions is an important measure because it encompasses both
profitability and capital management in evaluating results.